Brokerage Calls: Which stocks to invest in?

Brokerage tips lit up the Indian stock market landscape today as top research houses and brokerages rolled out a string of new recommendations that are ringing in the right tones in a bullish market sentiment. The positive mood follows as benchmark indices such as the Sensex and Nifty closed in the greens on Wednesday. 

Lot of 'Buy' calls

The charge was led by Motilal Oswal with "Buy" recommendations in various sectors.

• Lodha Developers led the list, with a target price of ₹1,870—reflecting an upside potential of 55% from the current levels. The brokerage attributed strong presales growth, resilient operating cash flows, and scalable township projects as the rationale for its bullish call on the real estate giant.
• Motilal reiterated its "Buy" on Larsen & Toubro, with a price target of ₹4,200, expecting gains from a 65% increase in the order book and strong execution in the core engineering and construction.
• Varun Beverages also received a "Buy" label, with Motilal Oswal eyeing ₹620 per share. The company is of the view that even weather hiccups that affect short-term volumes, the firm's backward integration and expansion of product portfolio will propel long-term growth.
• Gail was given a ₹210 target as the brokerage is expecting tariff increases and stable trading segment margins to drive earnings.
• Piramal Pharma was recommended for a eventual rebound, with a projected shift to ₹240 when investments in high-value segments such as peptides and injectables start to pay off.

Other houses were similarly active. Emkay Global suggested Gravita India, citing steady growth with a target of ₹2,100. Nuvama, on the other hand, preferred Vijaya Diagnostic Center and CDSL, the latter being upgraded to "Buy" with a 16% potential upside. Anand Rathi Shares picked Mazagon Dock, Vascon Engineers, and Thermax, citing strength in the defense and engineering sectors.

Not all calls positive

UBS kept a "Sell" on Tata Motors, citing fears of possible massive size acquisitions. Jefferies maintained a guarded position on Adani Green, while others brokerages had mixed thoughts on the choice of banks and pharma stocks, in line with sector-specific doubts.

Overall, broker sentiment is positive on fundamentally sound companies in real estate, infrastructure, energy, and specialty pharma, while selective stocks in autos and banking are under more scrutiny. For investors, these recommendations are a balancing act of optimism and caution, with analysts calling for portfolio discipline as earnings season gets into high gear.

Disclaimer:

The brokerage calls and stock recommendations mentioned in this article are for informational purposes only and should not be construed as financial advice or a solicitation to buy or sell securities. Investing in the stock market involves risks, and past performance is not indicative of future results. Investors are strongly advised to conduct their own research and consult with a qualified financial advisor or investment professional before making any investment decisions to ensure they align with their financial goals, risk tolerance, and individual circumstances.